Q2 2024 3M Co Earnings Call Transcript
Key Points
- 3M Co (MMM) reported a 40% increase in non-GAAP earnings per share to $1.93.
- Adjusted free cash flow was strong at $1.2 billion with a conversion rate of 109%.
- The company has successfully spun off its healthcare business and is undergoing significant restructuring.
- Operating margins expanded by 440 basis points year-on-year, driven by productivity and restructuring savings.
- 3M Co (MMM) repurchased $400 million in stock during the second quarter, indicating strong capital management.
- Organic revenue growth was modest at 1%, indicating challenges in driving top-line growth.
- The company faces ongoing legal and operational challenges related to PFAS manufacturing and settlements.
- R&D investment has been flat nominally over the past five years, impacting new product development.
- The company has a complex and interconnected supply chain, leading to inefficiencies and higher costs.
- Consumer business posted a 1.4% decline in organic sales, reflecting continued softness in consumer discretionary spending.
(technical difficulty) I would now like to turn the call over to Bruce Jermeland, Senior Vice President of Investor Relations at 3M.
Thank you, and good morning, everyone and welcome to our second quarter earnings conference call. With me today are Bill Brown, 3M's Chief Executive Officer; and Monish Patolawala, our President and Chief Financial Officer. Bill and Monish will make some formal comments, then we'll take your questions.
Please note that todayâs earnings release and slide presentation accompanying this call are posted on the home page of our Investor Relations website at 3m.com.
Please turn to slide 2. Please take a moment to read the forward-looking statement. During todayâs conference call, we will be making certain predictive statements that reflect our current views about 3M's future performance and financial results.
These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Item 1A of our most recent Form 10-Q
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